Good Idea: Yes, Let's Eliminate the Personal Property Tax
Another bill being considered now in Olympia is Senate Bill 6723. It is not a long bill. In full, it says:
"Sec. 1. (1) The legislature finds that the administration of the property tax on personal property is inefficient for government and business. The legislature concludes that a study is necessary to identify methods to best accomplish the elimination of the personal property tax.
(2) The department of revenue must conduct a study on alternatives for eliminating the property tax on personal property. In conducting the study, the department must examine the cost of administering the tax, savings to government and taxpayers by eliminating the tax, the effect on property tax rates, and property tax shifts.
(3) The department of revenue must seek the advice and input of local officials administering the property tax.
(4) The department of revenue must present a final report of its findings and alternatives, including a legislative draft proposal, to the ways and means committee in the senate and the finance committee in the house of representatives by October 31, 2011."
It would certainly be good for tax simplicity to do away with this tax. In my experience, many entrepreneurs are surprised there is such a thing as the personal property tax. Granted, as you learn in law school, ignorance of the law is no excuse, but that aphorism made a lot more sense when the laws we lived under were not so voluminous.
The views expressed here are my own.
